Data centers in Iowa

📜 State laws

HF 2690 (2026): data center water and power reporting bill did not pass · May 3, 2026
HF 2447 (later renumbered HF 2690) would have made data centers report their water and electricity use and where it comes from to the state, and made utilities set separate rates and fees for data centers so their costs are not passed on to other Iowans. The House Commerce Committee approved it 23-0 on February 18, 2026, after removing a pause on data center building until rates were filed and a requirement to publish each data center's electric service agreement. It was placed on the House calendar on February 23, 2026, and six amendments were filed in March, but it never got a floor vote before lawmakers adjourned in early May 2026. It is dead for this two-year session; a new bill would have to start over in January 2027. Source

HF 976 (2025): time limits on the data center electricity tax exemption · June 6, 2025
Governor Reynolds signed HF 976 on June 6, 2025 (it passed the House 84-0 and the Senate 45-0). For data centers that start operating on or after June 6, 2025, the sales tax exemption on electricity and backup generator fuel now lasts 10 years if the site is in a city of more than 30,000 people, or 15 years elsewhere. Data centers must register with the Iowa Department of Revenue and file a yearly report by January 31 on the electricity and fuel they bought. The exemption on computers, cooling and power equipment stays permanent. Source

HF 2001 (2026): water-efficient cooling for data centers, did not pass · Jan 13, 2026
HF 2001 would have required data centers to use water-efficient cooling, encouraged them to use non-drinking or recycled water, and set civil penalties. It was introduced and sent to the House Commerce Committee on January 13, 2026, and saw no further action. Source

HF 2198 (2026): making data center tax breaks public, did not pass · Jan 29, 2026
HF 2198 would have made public which data center businesses claim the sales tax exemption and how much tax they save. It was introduced on January 29, 2026, sent to the House Ways and Means Committee, and saw no further action. Today the Department of Revenue keeps each data center's report confidential. Source

2026 governor race: both candidates want state rules for data centers · Aug 24, 2026
Both major candidates for governor in November 2026 say the state should set minimum rules for new data centers. Democrat Rob Sand and Republican Zach Lahn both want to end tax breaks for data centers, make them pay all their costs including electric bills, and protect Iowa's water; they say they favor local control and public disclosure of energy and water use. Lahn has also said he would support a temporary statewide pause (moratorium). These are campaign positions, not law. Source

💡 Who pays for the power

The Iowa Utilities Commission sets rates for MidAmerican and Alliant · Oct 7, 2026
The Iowa Utilities Commission (IUC, formerly the Iowa Utilities Board) sets electric rates for the investor-owned utilities, mainly MidAmerican Energy and Alliant Energy (Interstate Power and Light). The Office of Consumer Advocate, part of the Attorney General's office, represents consumers in every IUC case. Many towns and rural areas get power from city-owned utilities and electric co-ops instead. Source

Alliant's data center deals use confidential 'individual customer rates' · Sept 10, 2026
Alliant (Interstate Power and Light) signs individual customer rate (ICR) agreements with big new customers such as data centers. Alliant's filing with the IUC says these rates are designed to recover no less than the marginal cost to serve the customer, and the IUC reviews them; the rates themselves are confidential. The IUC deliberated on Alliant's request to review its ICR agreements (docket TF-2025-0047) in October 2025. In September 2026 the group Iowa Business for Clean Energy said these 'secret' deals could leave households paying for new gas plants if data center demand does not show up; Alliant says large users pay the full cost of serving them. Source

Alliant: rate increase in 2024, then flat base rates to about 2029 · Sept 18, 2024
In September 2024 the IUC approved a settlement that raised Alliant's yearly Iowa electric revenue by $185 million; the average residential monthly charge went from $13 to $15.50. Alliant now says it will keep Iowa electric base rates flat for existing customers through the end of the decade (a five-year base rate freeze), and that growth from large customers like data centers helps make that possible. The cost of new power plants (such as the planned Bobcat, Morgan Valley and Riverhawk gas plants) is reviewed in a later rate case. Source

MidAmerican gas rate case (2026) · July 8, 2026
On July 7, 2026, MidAmerican asked the IUC to raise natural gas delivery rates; the average home bill would rise about 5%, or $2.89 a month. Interim rates began July 17, 2026, subject to refund if the final rate is lower. This case is about gas pipes, not data centers. We found no separate data center or large-load tariff for MidAmerican in Iowa. Source

New power plants of 25 megawatts or more need IUC approval · Oct 7, 2026
A power plant or battery site of 25 megawatts (or megawatt-hours) or more needs a generating certificate from the IUC before building. Power lines of 69 kilovolts or more outside cities need an IUC franchise, and the company must hold public information meetings in each county at least 30 days before filing. In 2025-2026 the IUC approved Alliant's 720-megawatt Bobcat gas plant in Marshall County. Source

💵 Tax breaks

Sales tax exemption for big data centers ($200 million or more) · Oct 7, 2026
A data center that invests at least $200 million in Iowa within six years, has at least 5,000 square feet, and meets state green building standards can buy computers, cooling systems, power equipment, backup generators, generator fuel and electricity without paying Iowa sales tax (or get the tax back). The equipment exemption has no end date. For sites that started on or after June 6, 2025, the electricity and fuel exemption lasts 10 years in cities over 30,000 people and 15 years elsewhere. The business must register with the Department of Revenue and report each year by January 31. Source

Smaller data centers: partial sales tax refund · Oct 7, 2026
Data centers that invest $1 million to under $200 million can get back half of the state sales tax they paid on qualifying purchases (up to 5% of the price) for their first 5, 7 or 10 years, depending on the size of the investment. Local option sales tax is not refunded. Source

Local deals: tax increment financing (TIF) and fee rebates · Dec 2, 2025
Cities can give data centers their own breaks, such as rebating new property taxes through tax increment financing (TIF). For example, Cedar Rapids' agreements with QTS and Google include rebates of new property taxes and of utility franchise fees. These deals are approved by the city council at a public meeting. Some developers in Iowa say they are not asking for local breaks. Source

🤐 Secret deals and public records

Iowa Open Records Law: anyone can ask · Oct 7, 2026
Every person has the right to see and copy public records of state and local governments (Iowa Code chapter 22); you do not have to live in Iowa or give a reason. Ask in writing, by phone or by email. The office should give records that take less than 30 minutes to find at no cost except copies; any other fees must be reasonable, limited to actual costs, and told to you when you ask. There is no fixed deadline, but a delay to decide whether a record is confidential should not go over 20 calendar days and usually not over 10 business days. Source

What can be kept secret about a data center · Oct 7, 2026
Iowa law lets governments keep some records confidential: trade secrets, and information held by an economic development authority about a business 'prospect' while it is still negotiating. That is why early data center talks are often kept quiet. Once a city council votes on a deal, the agreement and minutes are public. Separately, the Department of Revenue keeps each data center's yearly electricity report confidential. Source

Data center electricity rates with Alliant are confidential · Sept 10, 2026
Alliant's individual customer rates with data centers such as QTS are filed with the IUC but kept confidential from the public. HF 2690, which would have required publishing data centers' electric service agreements, lost that part in committee and did not pass. Source

2026 change: online meeting notices and 'vexatious requester' lawsuits · July 1, 2026
HF 2490, signed May 15, 2026 and in effect July 1, 2026, requires meeting notices to be posted in a visible place and on the government's website, and amended agendas to be marked 'AMENDED' at least 24 hours before the meeting. It also lets a government ask a court to limit a person's records requests if they are a pattern of 'vexatious conduct'. The government must prove this by clear and convincing evidence; many requests alone are not enough for news media, and if the government loses it pays the requester's legal fees. Source

Help if a records request is refused: Iowa Public Information Board · Oct 7, 2026
The Iowa Public Information Board (IPIB) handles complaints about open records and open meetings for free, and publishes advisory opinions. You can also go to court. Source

💧 Water

DNR water use permit for more than 25,000 gallons a day · Oct 7, 2026
Anyone who pumps more than 25,000 gallons of ground or surface water in a day needs a water use permit from the Iowa DNR (fee $350). The DNR must decide within 90 days and grants a permit if the use is 'beneficial' and conserves water; permits last up to 10 years and include conservation rules for droughts. The permit belongs to whoever pumps the water, so a data center that buys city water uses the city utility's permit. Draft permits are posted online with a comment deadline. Source

Critics say DNR does not check aquifers enough · Oct 2025
The Sierra Club's Iowa chapter says the DNR grants water permits without enough study of whether aquifers can handle the use. The state geologist has said Iowa's groundwater is not evenly spread, so a good site for power may be poor for water. HF 2001 (water-efficient cooling) and the water reporting in HF 2690 did not pass in 2026. Source

City water utilities sell water to data centers · Oct 2025
Many data centers buy water from a city water utility. For example, Microsoft's West Des Moines data centers used about 48.8 million gallons from West Des Moines Water Works in the first nine months of 2025, for evaporative cooling. City water deals are approved by the city or its water board, so ask your water utility for the agreement. Source

🌫️ Air and generators

DNR air construction permits for generators and gas plants · Oct 7, 2026
Diesel backup generators, gas turbines and power plants need an air construction permit before they are built. The Iowa DNR issues them everywhere except Linn and Polk counties, which have their own local air programs. Draft permits seeking public comment are listed on the DNR's Public Participation page; send written comments to the assigned engineer before the deadline (usually 30 days). Source

Linn County and Polk County run their own air permits · Oct 7, 2026
In Linn County (Cedar Rapids area) the Linn County Public Health Air Quality Division, and in Polk County (Des Moines area) the Polk County Public Works Air Quality Division, issue most air permits for generators. Big federal (PSD) permits still go through the state DNR. Source

🙋 How to have your say

Who decides a data center near you · Oct 7, 2026
Inside a city, the city council decides zoning, after its planning and zoning commission. On rural land, the county board of supervisors decides, after the county zoning commission; some counties have no zoning at all. Townships do not zone in Iowa. A city can extend its zoning up to two miles outside town only where the county has no zoning. Annexing land into a city can move the decision from the county to the city, and in 2026 many counties and cities passed temporary pauses (moratoriums) on data centers. Source

Zoning hearings: notice 4 to 20 days ahead · Oct 7, 2026
A zoning change needs a public hearing where anyone may speak. Cities and counties must publish notice in a local newspaper 4 to 20 days before the hearing. Watch your city's and county's agendas, which must be posted at least 24 hours before meetings and, since July 2026, also online. Source

Owners of 20% of nearby land can force a three-fourths city council vote · Oct 7, 2026
If owners of 20% or more of the land being rezoned, or of the land within 200 feet of it, sign a written protest and file it with the city clerk before or at the hearing, the rezoning needs a three-fourths vote of all council members. Source

Appeals: 30 days to go to court · Oct 7, 2026
A decision of a city or county board of adjustment (for example a special use permit or variance) can be challenged in district court by anyone harmed or any taxpayer, within 30 days after the decision is filed. Source

How to ask for records · Oct 7, 2026
Write to the city clerk, county auditor or state agency and ask for the records (for example: development agreements, water and power estimates, emails with the developer). Anyone can ask. Ask for an estimate of fees first. If you are refused, contact the Iowa Public Information Board. Source

How to comment at the Iowa Utilities Commission · Oct 7, 2026
Find the docket number (for example a rate case or a new power plant) in the IUC electronic filing system (efs.iowa.gov). Use the IUC's online form to file a comment, objection or letter of support; you can also mail it to 1375 E. Court Ave., Des Moines, IA 50319 with the docket number. Comments are public. For help call 515-725-7300. To take part formally, you can ask to intervene. The Office of Consumer Advocate also represents consumers. Source

Comment on a draft water use permit · Oct 7, 2026
The DNR lists draft water use permits under review, each with a notice, a summary and a comment deadline, and posts them weekly in its EcoNewsWire. Read the summary and send comments before the deadline. Source

🧾 Help with your bills

LIHEAP: help with heating bills · Sept 29, 2026
LIHEAP pays part of your heating bill. For 2026-27, households with someone 60 or older, a disabled member, or a housing crisis can apply from October 1, 2026; everyone else from November 1, 2026; applications close April 30, 2027. Apply at your county's community action agency (help finding it: 515-776-8871). From November 1 to April 1, utilities cannot shut off gas or electric service for households certified as eligible for LIHEAP or weatherization help, and telling your utility you are applying gives you a 30-day stay of disconnection. Source

Weatherization help · Sept 29, 2026
Community action agencies also run the Weatherization Assistance Program, which can make homes more energy efficient. Households eligible for it are also protected by the winter shut-off rule. Source

📞 Who to contact

Iowa Utilities Commission (IUC) · Oct 7, 2026
Sets rates for MidAmerican, Alliant and other regulated utilities; approves power plants of 25 MW or more and big power lines; takes public comments and complaints. Customer service: 515-725-7300 or 877-565-4450. Source

Office of Consumer Advocate (OCA) · Oct 7, 2026
Part of the Attorney General's office. Represents consumers and the public in all IUC cases. Source

Iowa DNR Water Allocation and Use · Oct 7, 2026
Water use permits for pumping more than 25,000 gallons a day; draft permits for comment. wateruse@dnr.iowa.gov, 515-725-0341. Source

Iowa DNR Air Quality Bureau · Oct 7, 2026
Air construction permits for generators and power plants (except Linn and Polk counties). Construction permit helpline 1-877-247-4692. Source

Polk County Public Works Air Quality Division · Oct 7, 2026
Local air permits in Polk County (Des Moines area). Source

Linn County Public Health Air Quality Division · Oct 7, 2026
Local air permits in Linn County (Cedar Rapids area). Source

Iowa Department of Revenue · Oct 7, 2026
Runs the data center sales tax exemption and refunds; receives data centers' registrations and yearly reports. Source

Iowa Public Information Board (IPIB) · Oct 7, 2026
Free help and complaints about open records and open meetings. Source

Iowa Department of Health and Human Services (HHS) · Oct 7, 2026
Runs LIHEAP through local community action agencies. Community Action Agencies Unit: 515-776-8871. Source

Iowa Legislature · Oct 7, 2026
Bill status, bill text and the Iowa Code. The 2027 session starts in January 2027; new data center bills would start over then. Source

Iowa Economic Development Authority (IEDA) · Oct 7, 2026
State business incentives (for example the High Quality Jobs program) approved by the IEDA board at public meetings. Source